OFFICE MARKETBEAT
Despite an increase in vacancy rates to 5.8% in Q1 2025 (from 4.7% in Q4 2024), CBD Grade A office rents grew 0.6% qoq. The rise in vacancy rates was due to new supply from Keppel South Central. Leasing activities saw a moderate pickup, driven by financial firms and co-working operators. Occupiers remain cautious but continue to seek quality spaces.
INDUSTRIAL MARKETBEAT
Prime logistics rents remained flat in Q1 2025, despite a rise in vacancy rates to 5.8% due to new supply. Major new developments like Punggol Digital District (65% pre-committed) and 1 Science Park Drive (76% occupied, 19% under advanced negotiations) have seen strong take-up rates, reflecting continued demand for quality spaces.
RETAIL MARKETBEAT
Islandwide prime retail rents grew by 0.4% qoq to $29.90 psf/mo in Q1 2025, driven by limited quality supply and resilient demand from tourism recovery. Suburban prime rents saw the strongest growth at 0.2% qoq, compared to Orchard and Other City Areas which increased by 0.5% and 0.7% qoq respectively.
CAPITAL MARKETS MARKETBEAT
Total investment volumes fell 15.7% qoq to $6.5 billion (b) in Q1 2025, led by the residential sector ($3.7b) followed by commercial ($1.6b) and mixed/others ($0.8b) sectors. The bulk of residential investment sales volume came from the public market, with five Government Land Sales (GLS) sites sold. Notable transactions included Frasers Centrepoint Trust’s acquisition of Northpoint City South Wing for $1.2b and Bain Capital’s purchase of Avery Lodge for $750m.
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